Buying A Multi-family, Any Advice?
Hi all!
I just found this forum and wanted to say hello.
I'm closing on my first property on the 1st of July. It is a modest two family home. I'll be living in one side and renting out the other.
I'm 21 by the way.
Any words of wisdom for somone just getting started as a landlord? (I'd like to eventually own more units, etc.)[ Edited by JDLangevin on Date 06/18/2004 ]
do your homework
don't over entend financially
pick an area (geographically and type of deal) and get very comfortable w/ it, but no to the exclusion of other deals.
I think you did the hardest already, buying your 1st deal.
buy the book "landlording" by leigh and start reading it. It's the Bible of landlording.
read through the landlord forums
figure out which documents you're going to use (lease agreements, applications, etc)
I could go on, but that's a good place to start.
Congrats!
check out the tenant and make sure you're not renting to a jerk... He's going to be your neighbor too.
When interviewing prospective tenants, always trust your gut.
Of course it's crucial that you conduct the obligatory background, income, credit history and past reference checks.
That goes without saying.
But in the end, go with your instinct.
[addsig]
I found a service online that for a small sum will run a tenant verification. After considerable issues with two tenants last year I was in the mood to scrutinize this go around. This goes double if you have to live next door to them. Good Luck. Also, know before you rent the state and local rules on eviction. I spent almost 5 months getting one out in ME. Wiser now...
Congrats on your new property!
PamMatthews:
Are you allowed to post the name of the site or link? I'm just about to settle on my first multi as well.
Thanks!
Lynne
I can't remember where I heard this, but one landlord said he always found some way to look into his prospective clients car. He found a correlation between the condition of the inside of their vehicle and the condition they would keep of his home. It's not very scientific, but it makes a lot of sense to me.